IRFA: US DOE’s new 45Z process recognizes biofuel plant innovation

The U.S. DOE announced a new process for fuel producers to petition for an individual evaluation of their fuel-production pathways when they are not covered by existing default carbon-intensity (CI) rate tables.

Because a plant’s CI score directly impacts its potential 45Z clean fuel production tax credit, the process creates an opportunity for producers to demonstrate how investments and innovations at their facilities are improving efficiencies and lowering CI scores.

“One size does not fit all,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

“Today’s action by the DOE is good news for biofuel producers,” Shaw said.

“While default values are a good starting point, they don’t tell the whole story,” he added. “IRFA members are constantly innovating and investing in ways to lower their CI scores. Individual plants need an opportunity to demonstrate the improvements happening inside their plants and have that innovation rewarded.”